News

Gamesa net profit amounted to €100 million on €1,546 million in revenues in the first quarter of 2017

10 May 2017

The company registered record revenues and profitability prior to the merger with Siemens Wind Power.

The results are in line with the guidance for 2017.

In the first quarter of 2017, prior to the
merger with Siemens Wind Power, Gamesa obtained €100 million net profit, 39%
more than in the year-ago quarter. These results were boosted by record
quarterly revenues, amounting to €1,546 million, and profitability, with an
underlying EBIT margin of 11.7%.

The figures for the first quarter are in line
with the most recent targets for 2017 and do not include the merger with
Siemens Wind Power, which was completed on 3 April, giving rise to a world
leader in renewable energy.

Gamesa key figures (vs. Q1 2016)

Figures in euro

Revenues: 1,546 million (+45,3%)

Sales: 1.490 MWe (+40,5%)

Underlying EBIT1: 181 millones (+52,8%)

UnderlyingEBIT margin: 11,7% (+0,6%)

EBIT: 173 million (+46%)

Net profit: 100 million (+39,4%)

Net cash: 257 million (vs. 194 million)

Record revenues and profitability

Revenues increased
by 45% in the first quarter to €1,546 million as a result of strong growth in
wind turbine manufacturing and sales and in the contribution by services.

In the first
quarter, the wind turbine business increased revenues by 48% to €1,412 million
as a result of 40.5% growth in activity volume to 1,490 MWe. The countries that
contributed most to turbine sales growth were India and the USA, due to their
respective legislations. America contributed 48%, Asia 40%, and EMEA (Europe,
Africa and the Middle East) 11%.

Operation and
maintenance revenues regained the pace of growth in the period, increasing by
25% to €134 million.

Commercial
activity in the first quarter resulted in firm orders for 827 MW, bringing LTM
order intake to 4.5 GW and covering 74% of the volume guidance for 2017: close
to 5,000 MW.

In this context
of growing activity, Gamesa obtained €181 million in underlying EBIT (+53%),
i.e. an EBIT margin of 11.7%. That figure does not include €8 million in merger
costs. Net profit amounted to €100 million, an increase of close to 40%. The
company continues to strengthen its balance sheet and ended the quarter with a
net cash position of €257 million.

A new era

Gamesa concluded
its life as a standalone company with quarterly results fully in line with the
guidance for 2017, coupled with record revenues and profitability, all while
fulfilling its commitment to a sound balance sheet.

The merger with
Siemens' wind power arm, which took place on 3 April, produced a new world
leader in the wind business, which came into being equipped to address the
challenges and seize the opportunities that the wind industry will offer in the
short, medium and long term while creating value for all stakeholders.

On Monday, the
Board of Directors appointed Markus Tacke as CEO of the company,
succeeding Ignacio Martín, who in April had announced his decision to step down
once the merger was completed and the integration process had begun.

Mr.Tacke will lead the company in this new era with
the support of a team of executives drawn from
both companies, who have a long track record in the automobile, industrial and
energy sectors, thus assuring the group's stability and continuity.

·

Markus Tacke serves as CEO of Siemens
Gamesa. Tacke has more than 20 years of experience in the energy and power
generation sectors, and has held a number of senior executive positions in the
industry. Before the merger, he served as CEO of Siemens Wind Power. Before
being named CEO of Siemens' Wind Power Division, Tacke served as CEO of
Siemens' Industrial Power Business Unit. He holds a PhD in Mechanical Engineering from Darmstadt University
(Germany), and a Master's Degree in Combustion and Fluid Dynamics from Cornell
University (New York, USA). Between 2014 and 2016, he served as Chairman of
EWEA/Wind Europe, the association for the European wind power industry.

Andrew Hall, CFO of Siemens Gamesa. From
2015 until the merger with Gamesa, Mr. Hall served as CFO of Siemens Wind
Power. He held numerous senior management positions in Siemens AG as CFO for
Africa and for North West Europe. Andrew Hall holds an MSc in Electrical & Electronic Engineering
from the University of Cape Town and an MBA from the London Business School.

Xabier Etxeberria, CEO Onshore for
Siemens Gamesa. From 2012 until the merger, Mr. Etxeberria served as Business
Chief Executive Officer at Gamesa. Before joining Gamesa, he spent much of his
professional career at the automotive engineering specialist group, GKN, where
he served as Managing Director with responsibility over manufacturing, sales
and operations, among other duties. He was also Chairman of the Board of the
Spanish subsidiary and member of its global Executive Committee since 2011.
Between 1994 and 2002 he held several positions at GKN Automotive, heading up
manufacturing operations and product development and engineering, among other
areas. Mr. Etxeberria holds a degree in Industrial Engineering from the
University of Bilbao, Spain.

Michael Hannibal, CEO Offshore for
Siemens Gamesa. He has more than ten years of experience in the wind power
industry. Prior to the merger, Mr. Hannibal was CEO of the Offshore Wind Power
Business Unit at Siemens AG. Previously, he held the position as Vice
President, Global Sales Offshore at Siemens Wind Power A/S. Mr. Hannibal holds a Bachelor of Science in Electrical Engineering
from Aarhus School of Engineering and a Strategic Management and Market
Oriented Strategic Business Development from Aarhus Business School.

Mark Albenze, CEO Services for Siemens
Gamesa. From 2014 until the merger, he served as CEO of Siemens Wind Power's
Service business. From 2011 to 2014, Mr. Albenze was CEO of Wind Americas. Over
the course of his career, he held various positions in new unit generation sales,
supply management, business development and marketing. Mr. Albenze holds a Bachelor's degree in Criminal Justice from
Western Michigan University, a Master's degree in Government from Troy
University and a Master's degree in Management from Webster University.

David Mesonero, Corporate Development,
Strategy and Integration Managing Director of Siemens Gamesa Renewable Energy. Before
the merger, he has been Head of Corporate Development at Gamesa. Mr. Mesonero
has been with Gamesa since 2010.
Mr. Mesonero holds a Bachelor's degree
in Business Administration from ICADE and an MBA from IESE. He also has a
background as a strategic consultant and investment banker.

José Antonio Cortajarena, Chief
Corporate and General Secretary is also Deputy Secretary non member of the Board of Directors. Before the
merger, he held the same position in Gamesa. Mr.Cortajarena holds a Degree in Law from
Universidad del País Vasco and a Master's in Business Law at IE Business
School. He joined the State Attorney corps in 1997, currently on leave.

Félix Zarza serves as Director of
Internal Audit. During the last 14 years, he has been the Director of Internal
Audit in Gamesa. Previously, he held different positions within Arthur Andersen
and Deloitte. He holds a Degree in Economics and Business
Administration from the University of Deusto and he is also a Certified Public
Accountant (CPA) (Spanish Institute of Accounts Auditors)

The executive team's primary objective is to
advance with the integration, which is already under way, in order to design
the group's strategy and draw up a business plan, expected in the second half
of the year
.

1Underlying EBIT in Q1 2017 does not include €8 million in costs related to the merger with Siemens Wind Power.